Wells Fargo shares retreat the most in a week on Wednesday, company fined by FINRA for record-keeping issues
Wells Fargo & Co, RBC Capital Markets, LPL Financial and others were reported to have been fined by the Financial Industry Regulatory Authority (FINRA) on December 21st for record-keeping issues, which may have made alteration of company and customer documents possible. The fined entities will have to pay a combined $14.4 million. According to the regulator, the companies did not keep hundreds of millions of electronic documents in the so called “write once, read many” format. The latter would have prevented modification or eradication of records once they were written.
Wells Fargo shares fell the most since December 14th on Wednesday, erasing a portion of the gain from the previous trading session. The stock went down 0.70% ($0.39) to $55.71, with the daily high and the daily low being at $56.02 and $55.64 respectively. In the week ended on December 18th the shares of the bank holding company lost 3.15% of their market value compared to a week ago, which marked a second drop in the past six weeks, but yet, the largest one since the week ended on November 6th. The stock has pared its advance to 5.27% so far during the current month, after climbing 15.02% in November. The latter has been the stock’s best performance since May 2009. Back then Wells Fargo shares appreciated 27.44%.
Wells Fargo’s securities and prime brokerage businesses were fined $4 million, while its brokerage and independent wealth management businesses – $1.5 million. At the same time, RBS Securities, SunTrust Robinson Humphrey, Georgeson Securities Corp and PNC Capital Markets will need to pay fines at amounts ranging between $500 000 and $2 million.
“We self-reported these issues to FINRA and continue to remediate as agreed”, said Elise Wilkinson, the official spokesperson in Wells Fargo’s wholesale banking division, cited by Reuters.
According to the Financial Industry Regulatory Authority, no evidence was present that documents had been modified, but yet, the regulator noted these records were “pivotal to the firms’ brokerage businesses”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, today’s levels of importance for the Wells Fargo stock are presented as follows:
R1 – $55.75
R2 – $55.79
R3 (Range Resistance – Sell) – $55.83
R4 (Long Breakout) – $55.96
R5 (Breakout Target 1) – $56.10
R6 (Breakout Target 2) – $56.16
S1 – $55.67
S2 – $55.63
S3 (Range Support – Buy) – $55.59
S4 (Short Breakout) – $55.46
S5 (Breakout Target 1) – $55.32
S6 (Breakout Target 2) – $55.26
By using the traditional method of calculation, the weekly levels of importance for Wells Fargo & Company (WFC) are presented as follows:
Central Pivot Point – $55.49
R1 – $56.95
R2 – $58.56
R3 – $60.02
R4 – $61.48
S1 – $53.88
S2 – $52.42
S3 – $50.81
S4 – $49.20